Offsetting Forces In London, Supply Dynamics & Fedspeak Eyed Later

Tsys coil over the last couple of hours, with some equity/oil market weakness helping counter the tick away from best levels of the day.

• That leaves TYH4 +0-01+ at 109-31+ (range of 109-27-110-00), on around average volume of ~252K.
• Familiar initial technical parameters remain in play in that contract (support at 109-17/15 & resistance at 110-17+), with the overarching bear threat remaining evident.
• Curve twist steepening bias remains evident for a second day, with benchmark yields 2.5bp lower to 0.5bp higher.
• 2s10s and 5s30s continue to coil in established month-to-date ranges.
• Some focus on today’s 20-Year issuance may be limiting the longer end.
• IG$ issuance pace will continue to garner attention.
• FOMC meeting minutes & MBA mortgage app data will cross in NY hours.
• Elsewhere, Fedspeak from Bowman, Bostic, Barkin & Collins will hit.